Kevin O’Leary on economy: ‘Things are not as bad’ as everyone anticipated

The Federal Reserve cut interest rates for the third time this year on Wednesday, but market commentator and “Shark Tank” star Kevin O’Leary thinks the economy is too good to warrant more rate cuts from here.

“I think the Fed may pause for a while,” O’Leary said, referring to interest rates.

The market seems to agree and is pricing in just a 17% chance of a rate cut at the Fed’s next meeting in December, according to CME data.

“Things are not as bad as everybody had anticipated and not slowing as much as everybody thoughts,” added O’Leary, is also chairman of O’Shares.

Third quarter gross domestic product, released on Wednesday, rose 1.9%, topping Wall Street’s expectations.

“We look great on GDP,” he said. “The Fed has to be looking at this saying, I think we’ll take a rest — and the market is at peace with that at this point.”

Aside from the strong GDP print, the economy also added 125,000 private sector jobs in October, according to an ADP report on Wednesday.

The Fed, even though it cut rates Wednesday, acknowledged the recent round of strong economic data, saying:

“Information received since the Federal Open Market Committee met in September indicates that the labor market remains strong and that economic activity has been rising at a moderate rate.”

Television personality Kevin O'Leary arrives at the 2015 American Music Awards in Los Angeles, California November 22, 2015. REUTERS/David McNew

Trade optimism

O’Leary also thinks the stock market is willing to wait for a trade deal.

“We’re being thrown that bone on trade,” he said. “We’re being thrown that vision of maybe getting a deal over the next few years because you’ve got this stage one deal coming.”

While O’Leary acknowledges that the phase one deal is more of a tertiary deal, it’s better than nothing, he said.

“The market is willing to wait for the rest of that [trade deal]’,” he added.

Scott Gamm is a reporter at Yahoo Finance. Follow him on Twitter @ScottGamm.

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